India’s Banks & Trading Houses Only Receiving 10% of Gold Orders

The recent takedown in the price of gold has created huge demand for physical bullion worldwide.  India’s wholesale buyers are only receiving a tenth of the gold imports that they have ordered.

According to The Economic Times India article:

Haresh Soni, chairman of the All India Gem and Jewellery Trade Federation, said banks and trading houses importing gold are getting only 10 per cent of their orders as the demand has surged sharply after a sudden slide in gold prices last month. “If they place order for one tonne, for instance, then they are getting only around 100 kg,” Soni said. “Consumers are buying in advance for family weddings scheduled in winter.” Buyers have been swarming to jewellers since last month as gold prices fell 11.5 per cent in a week, from over Rs 29,000 per 10 gm on April 10 to Rs 25,680 on April 17. Since then, the prices have partially recovered to about Rs 27,500 this week.

Furthermore, many Indian jewellers are expecting gold sales of 30-50% higher during the Akshaya Tritiay holiday (May 13th) compared to last year due to the lower price of gold.

“People are buying jewellery of all kinds and there is good demand for coins too,” said Rajesh Mehta, chairman of Bangalore-based jeweller Rajesh Exports, which has 80 retail outlets across Karnataka under the brand name Shubh Jewellers. He expects a 30 per cent jump in demand for Akshaya Tritiya.

With this sort of demand, the price of gold will not remain this low for long.

(photo above: soure Reuters)

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15 Comments on "India’s Banks & Trading Houses Only Receiving 10% of Gold Orders"

  1. SRS

    I have enjoyed your insights @ TF Metals and am glad to see you got your site up and running as I will enjoy the fruits of your hard work. Congrats on the site.

  2. Inidan Demand…….7 or 8 std.deviation moves can do that !

  3. Very glad to see your site up! Always look forward to seeing your stuff on Doc and Turd’s sites…it will be great to have a new site to go to with such excellent information! Thank you and best of luck with the site!

  4. backseatdriver | May 13, 2013 at 10:19 am |

    Congrats SRS, big fan here. I have always appreciated your hard work, insight and diligence with regards to the PM sector. I look forward to your future posts.


  5. Thanks for the comments. I believe the key going forward is understanding how energy plays a large role in the value of goods and services. Without energy, the world stands still. The best stores of value are the precious metals — especially when faith in fiat currencies dries up and blows away.

  6. Steve, Good to see the site is up and hope ur IT issues are behind you. backseatdriver took the words right out of my mouth.

  7. I’ve mentioned your work on the SSG site before, and let everyone know that your site is live.

    Congrats, and thanks for all the fantastic charts and graphs.

    EROI was a whole new way of looking at it for me, however it seems to be the most logial now.

  8. Just wanted to say Congrats!!!

    I look forward to stopping by here often.

  9. Congratulations on your new website. Your research is extraordinary, and I will be visiting you regularly.
    There are many members of our community that float from site to site, and I keep seeing the same names over and over again.
    You have already built quite a following across the Internet, many have great respect for your work.
    It always takes me a while to get into the groove of integrating a new site into my daily research,
    but since I have always sought out your posts, at least now I know where to find you.

    Live long and prosper,

    Mr. Fix.

  10. Roger rocker | May 13, 2013 at 11:35 pm |

    Yipee! A new website for my kind of thinking.

    Congratulations SRSrocco!

    I’m a producer of energy – meat and gas. I base most of my business decisions on energy in vs. energy out. This helps me be more profitable on my farm and reduces the operating costs of the company I work for.

    In my opinion most things are not priced with regard to energy. Things are priced in terms of debt. What a great awakening awaits us when things are priced in terms of energy. Energy has been undervalued since oil was discovered in Pennsylvania, perhaps even earlier when steam power was invented. We in the west have been getting cheap energy for 150 years at least, but that will soon change. The East wants their share and they’re going to get it. And I think energy will be priced in gold and silver and when energy is priced, globally, in gold and silver, the East will rule the world.

    Too bad, so sad, U.S.A.

    So I think SRSrocco has hit the nail on the head, I’m glad his word is spreading. Maybe humans of the world will prevail, maybe we will get rid of the greedy buggers some day…


  11. Been following you since day 1 at TFmetals. Your work is exceptional.

  12. UTgoatroper | May 14, 2013 at 9:57 pm |

    CONGRADULATIONS, My dear friend. I have but one Question.
    #1 Is that really your hand in the picture.
    Good luck Rocco……

  13. Everyone… just wanted to say thanks for popping in and checking out the site. I look forward to putting out some great information and data.

    UTgoatoper… Great to get a reply from you. Long time no see…LOL.

  14. Congrats on the new website SRS.. added to my bookmark bar. I do industrial ecology research, and the energy perspective has sorely been lacking in many economic discussions. Cheers to many articles to come!

  15. Great new site. I’ve always appreciated your research and analysis on TMFR and look forward to your continued insights into the PM market. Congratulations SRS!

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